Amusement Tax Disagreement Mahoning Board Is Not Amused

June 14, 1990|by TYRA BRADEN, The Morning Call

After a brief, fruitless meeting last week to decide who should be exempt from paying an amusement tax, the operator of the Mahoning Valley Speedway and the chairman of the Mahoning Township supervisors disagreed so vehemently that police were summoned.

As a result, supervisors last night voted unanimously that the township solicitor will handle the matter from now on.

Speedway operator Ward Crozier was issued a citation for harassment after he and supervisors chairman Timothy Eckhart argued Friday. Eckhart said the debate began after he stopped a meeting that began 15 minutes earlier between himself, township solicitor Holly Heintzelman and Crozier, his lawyer, Christie Schaffer, and her associate, Cynthia A. Dyrda.

The meeting was held in the township building, which also houses the police office on the second floor. After the incident, Crozier was cited for harassment, police said. Harassment is a summary offense.

Crozier -- who with his wife, Dorothy, has operated the racetrack along Route 443 just west of Lehighton for the past three years -- and the township disagree about how much amusement tax he should pay. An ordinance adopted in 1987 entitles the township to 10 percent on all admissions.

However, Crozier does not pay the tax for people admitted into the pit area, because he said they are at the racetrack to work, and not to be entertained. He said only drivers, mechanics and owners are allowed in the pit area and that revenues from pit admission are used to pay insurance.

Nevertheless, Heintzelman said, "I have a great deal of difficulty with the concept that 600 people in the pit are all exempt" from the amusement tax.

Eckhart said Friday's meeting was set up to discuss how many people per car should be allowed in the pit area. The township suggested that three people were adequate, but Eckhart said Crozier indicated that wouldn't be acceptable.

"I closed the meeting that we had with him because we weren't getting anywhere," Eckhart said. "I did explain that we would go three people. He didn't want that. I thought he wanted five, and then I find out he wanted more, and then I find out he wants more than five. Well, there's no sense in even having a meeting then. What I think he wants is unlimited."

Neither Crozier nor Schaffer could be reached for comment last night.

"So which is the proper way of doing this now?" Eckhart asked. "Do we go after the money for the 600 people that enter the pits and go to court with it or what? Or do we have to have an audit first?"

Heintzelman said the supervisors should "look at his books first, because right now, you're only talking about people that are in the pit. I don't know whether there are other fees coming in that he's not paying tax on at this point. Someone mentioned ... season passes or something. I mean, if you're going to go to court with this I think you want to know exactly where you're going and you want to do it all at one time."

The supervisors last night voted unanimously to get estimates about how much it would cost to have someone audit the racetrack's books. Crozier said that in 1987 he paid the township $22,000 in amusement tax; in 1988, $27,000; and in 1989, $25,000. He said the race season includes about 26 races, and the average grandstand draw is between 1,200 and 1,800. Eckhart closed the discussion by saying, "I will not attend any more meetings with Ward Crozier."